As part of a Covid-19 stimulus bill passed in March 2021, there are additional subsidies for 2021 and 2022. For 2021 and 2022 the law got rid of the income limit on premium assistance, meaning some people with incomes as high as $149,000 can benefit. Because of the enhanced subsidies, people with non-ACA compliant plans might want to look back to the ACA markets in these years to see if there is more affordable coverage available to them.
For 2021, if you collected unemployment insurance you are eligible to pay nothing for premiums on some plans. In order to qualify, you must not be eligible for job-based health insurance.
For 2021 and 2022, the subsidies cap your premium payments at a percentage of household income. In 2020, someone with $19,140 of income or less generally paid 4.14% of their income for health insurance premiums. Now, the government will pick up the entire cost. For individuals earning up to $51,040, they’ll pay 8.5% of income down from nearly 10% previously. Those earning more can also cap their premiums at 8.5% of income. The savings are even greater the older you are, as ACA plans permit higher charges based on age.
If you were already enrolled in an ACA plan, the higher subsidies are retroactive to the beginning of the year. To make sure your premiums for the rest of the year reflect your extra subsidies, login to your marketplace account and update your applications. You can claim any premium subsidies that you missed out on from the beginning of the year when you file your taxes.